Digital Cash Register for Secure Identity Management
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Solution Overview
Problem
Digital currency lacks identity and security, making it vulnerable to fraud and abuse, as it is primarily represented as a number without inherent value or accountability in computerized systems, leading to difficulties in tracking and ensuring the integrity of financial transactions.
Innovation Solution
The BitMint Financial Language reintroduces identity to digital coins by using a cryptographic processing system that assigns randomized identities to digital coins, allowing them to be managed like physical cash, with a digital cash register that ensures clarity, security, and accountability through a system of BitMint coins and a coin logger.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If digital currency is represented as a number in computerized systems, then it enables convenient digital handling and processing, but it loses identity and becomes vulnerable to fraud and abuse
Solution Approach 1:
The digital coin is segmented into distinct components: a capsule containing transactional attributes and a separate payload containing the actual money value. This segmentation allows the system to maintain both the operational convenience of digital numbers and the security of tracked identities, as each component serves a specific function while together they form a secure, traceable digital currency unit.
2Device complexity
If digital money is handled without a physical cash register, then it simplifies the system architecture, but it makes fraud and abuse easier to commit
Solution Approach 1:
The patent introduces a digital cash register as an intermediary component that sits between the simplified digital system and the security requirements. This digital cash register maintains records of all digital coins, tracking their creation, transfer, and redemption, thereby preventing fraud and abuse while preserving the overall simplicity of the digital architecture.
3Productivity
If digital coins are issued without cryptographic processing and identity assignment, then it reduces processing overhead, but it prevents accurate tracking and accountability
Solution Approach 1:
The system performs preliminary cryptographic processing and identity assignment when digital coins are first issued or minted. The digital cash register records all essential information about each coin at creation, including its unique identifier and transactional attributes. This preliminary action ensures that tracking and accountability information is preserved from the outset without requiring continuous complex processing throughout the coin's lifecycle.
Data Source
AI summary
This invention describes a new financial language which cures a deficiency sustained by money when it became computer handled: money lost its identity and became a number, as compared with banknotes and physical coins which had a material identity. The new language writes digital coin such that they have value and identity fused together. This new language allows for restoration of the old notion of the cash register. This invention describes a digital cash register offering operational advantages as to clarity, security and accountability.